Kotak Securities recommends ‘Buy’ on SREI Infrastructure Finance

MUMBAI: Kotak Securities has maintained ���Buy��� rating on SREI Infrastructure Finance.

In result update note, the brokerage said, ���SREI���s consolidated Q1FY10 performance was materially above our expectation at Rs 390 million following sequential improvement in margins. The company���s interest income includes MTM forex gains on its foreign currency borrowing. Disbursement growth has picked up and is expect to be buoyant in the following quarters.

We maintain our positive outlook for SREI infrastructure given the improved macroeconomic scenario which supports advances growth and easing liquidity will also help improve margins. We still await further details from the management, and hence continue to maintain our Buy recommendation for the stock with a price target of Rs 75.���